| 1 | 1 | | 88R6927 ANG-F |
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| 2 | 2 | | By: Reynolds H.B. No. 2227 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the analysis of inspection and maintenance requirements |
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| 8 | 8 | | for air quality permits issued by the Texas Commission on |
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| 9 | 9 | | Environmental Quality for certain oil and gas facilities. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. DEFINITION. In this Act, "commission" means the |
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| 12 | 12 | | Texas Commission on Environmental Quality. |
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| 13 | 13 | | SECTION 2. ANALYSIS OF INSPECTION AND MAINTENANCE |
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| 14 | 14 | | REQUIREMENTS FOR OIL AND GAS FACILITIES. (a) This section applies |
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| 15 | 15 | | only to a rule or requirement: |
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| 16 | 16 | | (1) relating to a permit by rule or a standard permit |
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| 17 | 17 | | for a facility described by Section 382.051961(a), Health and |
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| 18 | 18 | | Safety Code; and |
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| 19 | 19 | | (2) that: |
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| 20 | 20 | | (A) is a rule or requirement of the commission in |
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| 21 | 21 | | effect on June 1, 2023; or |
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| 22 | 22 | | (B) is a proposed or approved federal rule or |
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| 23 | 23 | | requirement that may be implemented before December 31, 2023. |
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| 24 | 24 | | (b) The commission shall examine rules and requirements |
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| 25 | 25 | | described by Subsection (a) of this section governing: |
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| 26 | 26 | | (1) inspection and maintenance programs, including |
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| 27 | 27 | | programs that use optical gas imaging, for the detection and repair |
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| 28 | 28 | | of leaks from all valves, pump seals, flanges, compressor seals, |
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| 29 | 29 | | pressure relief valves, open-ended lines, tanks, and other process |
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| 30 | 30 | | and operation components of the facility that could result in |
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| 31 | 31 | | fugitive emissions; |
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| 32 | 32 | | (2) the use of venting and flaring; |
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| 33 | 33 | | (3) emissions of volatile organic compounds from |
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| 34 | 34 | | storage tanks that have the potential to emit more than one ton of |
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| 35 | 35 | | volatile organic compounds per year; |
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| 36 | 36 | | (4) emissions of nitrogen oxides from compressor |
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| 37 | 37 | | engines with more than 100 horsepower; |
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| 38 | 38 | | (5) maintenance requirements and best practices for |
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| 39 | 39 | | compressor stations; and |
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| 40 | 40 | | (6) emissions from and maintenance of pneumatic |
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| 41 | 41 | | devices and controllers between a wellhead and a natural gas |
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| 42 | 42 | | processing plant. |
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| 43 | 43 | | (c) The commission shall prepare a report that: |
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| 44 | 44 | | (1) addresses issues raised concerning the rules or |
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| 45 | 45 | | requirements described by Subsection (b) of this section; |
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| 46 | 46 | | (2) addresses the staff, technical assistance, and |
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| 47 | 47 | | other resources needed to incorporate any proposed or approved |
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| 48 | 48 | | federal rule involving emissions of methane and other pollutants |
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| 49 | 49 | | from facilities described by Subsection (a)(1) of this section into |
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| 50 | 50 | | commission rules under the state implementation plan; and |
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| 51 | 51 | | (3) suggests options for improving safety, preventing |
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| 52 | 52 | | air emissions from oil and gas equipment, including methane and |
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| 53 | 53 | | other useful products, and reducing emissions from facilities |
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| 54 | 54 | | described by Subsection (a)(1) of this section. |
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| 55 | 55 | | (d) In suggesting options for improvement for the purposes |
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| 56 | 56 | | of Subsection (c)(3) of this section, the commission may consider: |
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| 57 | 57 | | (1) both regulatory and incentive approaches, |
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| 58 | 58 | | including approaches taken in other leading oil and gas producing |
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| 59 | 59 | | states that would lead to improvements in air quality and public |
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| 60 | 60 | | health; and |
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| 61 | 61 | | (2) the use of federal or state funds, including funds |
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| 62 | 62 | | available through the methane emissions and waste reduction |
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| 63 | 63 | | incentive program (42 U.S.C. Section 7436) or the Texas emissions |
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| 64 | 64 | | reduction plan, to help reduce emissions and comply with state and |
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| 65 | 65 | | federal rules. |
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| 66 | 66 | | (e) The commission may cooperate with the Railroad |
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| 67 | 67 | | Commission of Texas in developing the report and obtaining public |
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| 68 | 68 | | comment under Subsection (f) of this section. |
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| 69 | 69 | | (f) Not later than January 1, 2024, the commission shall |
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| 70 | 70 | | issue and make available for public comment a preliminary report. |
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| 71 | 71 | | The commission may hold meetings to consider public comment. After |
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| 72 | 72 | | considering public comment, if any, but not later than June 1, 2024, |
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| 73 | 73 | | the commission shall post on its Internet website the final report. |
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| 74 | 74 | | (g) Nothing in this section prevents the commission from |
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| 75 | 75 | | adopting rules on the issues contained in the study. |
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| 76 | 76 | | SECTION 3. EXPIRATION. This Act expires August 31, 2025. |
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| 77 | 77 | | SECTION 4. EFFECTIVE DATE. This Act takes effect September |
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| 78 | 78 | | 1, 2023. |
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